Key Takeaways
- AOS holders with valid EADs are legally authorized to own and operate US franchise businesses — the EAD grants full work authorization
- Most major franchisors (Subway, McDonald's, Anytime Fitness, 7-Eleven) accept non-permanent-resident franchise owners with valid EADs
- SBA franchise financing is closed to AOS applicants as of March 1, 2026 — Bankable funds franchise acquisitions based on the franchise's projected or existing revenue
- Bankable evaluates franchise acquisitions based on the target franchise's revenue history — not the buyer's immigration status
- Up to $5M available for AOS holders buying or expanding franchise businesses — 48-hour decisions
Owning a franchise while in Adjustment of Status is not only legal — it is increasingly common. The question AOS entrepreneurs most often face is not whether they can own a franchise, but who will fund the acquisition now that the SBA closed its doors to all AOS applicants in March 2026. Bankable was purpose-built for this exact situation: revenue-based franchise funding for green-card-pending business owners, with decisions in 48 hours and no immigration status requirements in our underwriting.
Can AOS EAD Holders Be Franchise Owners?
Yes. Your Employment Authorization Document establishes your legal right to work in the United States in any capacity — including as a business owner, franchisee, or corporate officer. Federal law does not prohibit non-permanent residents from owning franchise businesses. The relevant question is the franchisor's own requirements, which vary by brand.
Most major franchise brands accept EAD holders as franchisees. Some brands explicitly state they accept non-permanent residents; others are silent on immigration status in their FDD (Franchise Disclosure Document). In practice, if you can demonstrate business acumen, sufficient capital, and pass the franchisor's background check, most franchisors will approve an AOS holder. Notable exceptions exist — some SBA-partner franchisors have financing programs that require permanent residency. In those cases, Bankable becomes even more important because you need non-SBA financing to close the deal.
How Bankable Funds AOS Franchise Acquisitions
For an existing franchise location, Bankable evaluates the franchise's trailing 3–6 months of revenue. For a new franchise build-out (opening a new unit), we evaluate the brand's franchise average unit volume (AUV) and your planned location's market data. For multi-unit expansions, we evaluate the existing units' combined revenue. Your AOS status does not appear in our credit analysis — your franchise's revenue does.
Franchisor Acceptance of AOS/EAD Holders
| Franchise Brand | AOS/EAD Acceptance | Notes |
|---|---|---|
| Subway | Generally accepted | Non-permanent residents with EAD accepted |
| 7-Eleven | Generally accepted | Strong history of immigrant franchisee acceptance |
| Anytime Fitness | Generally accepted | Review FDD; no permanent residency requirement stated |
| UPS Store | Generally accepted | Strong immigrant franchisee community |
| McDonald's | Review required | Per-applicant review; EAD holders have been approved |
What Bankable Funds in Franchise Transactions
- Franchise acquisition cost: The fee paid to acquire an existing franchise unit or open a new one.
- Build-out and equipment: Leasehold improvements, furniture, fixtures, and specialized equipment for the franchise location.
- Initial inventory: First-month inventory and supplies needed to open.
- Working capital reserve: Cash reserve for the first 90–180 days of operation while revenue ramps up.
- Multi-unit expansion: Capital to fund a second or third franchise unit for existing AOS franchisees.
Ready to fund your franchise? Check your Bankability Score today. For background on why SBA franchise financing is no longer available to AOS holders, see our SBA 7(a) guide.
Frequently Asked Questions
Yes. Your Employment Authorization Document grants full work authorization, including the right to own and operate a franchise business. Federal law does not restrict franchise ownership based on permanent residency status.
Most major franchisors accept EAD holders, particularly those with long-standing EADs and stable AOS cases. Review the FDD carefully and consult directly with the franchisor. Many brands — 7-Eleven, Subway, Anytime Fitness — have established histories of franchising to immigrant owners.
The SBA's March 1, 2026 rule change formally excluded all Adjustment of Status applicants from SBA 7(a) and 504 programs. Since SBA 7(a) is the most common franchise financing vehicle, this has been a significant blow to AOS franchise aspirants. Bankable is the leading private alternative.
Bankable evaluates existing franchise locations on their trailing 3–6 months of revenue. For new build-outs, we look at brand AUV data and market analysis. Your AOS status does not factor into our underwriting — your franchise revenue does.
Up to $5M. Typical franchise acquisition funding ranges from $50K to $1M depending on the brand and location. Multi-unit acquisitions can reach the $1M–$5M range.
Yes. AOS holders can own multiple franchise units. Bankable can fund multi-unit expansions based on the combined revenue of your existing units plus projected new-unit revenue.
Some franchise brands have SBA-affiliated preferred lenders. If the brand requires SBA financing and you are AOS, you have two options: negotiate private financing directly with the franchisor's approval, or work with Bankable to provide private financing that the franchisor can review and accept.
Yes. Bankable funds new franchise unit build-outs for AOS holders, including equipment, leasehold improvements, initial inventory, and working capital. We evaluate the brand's AUV and market data for new locations.